European stocks declined this week as better-than-estimated earnings failed to ease concern a seven-month rally in equities has outpaced the prospects for economic and profit growth.
STMicroelectronics NV led a retreat in technology companies after Royal Bank of Scotland Group PLC recommended selling the shares. Elan Corp sank 22 percent as its multiple sclerosis drug Tysabri was linked to 23 cases of a potentially fatal brain disease. Valeo SA advanced 4.9 percent after posting a quarterly profit. Nestle SA climbed 7.1 percent as UBS AG advised buying shares in the world’s largest food company.
The Dow Jones STOXX 600 Index slipped 0.3 percent to 244.89, following two weeks of gains. The regional gauge has rallied 55 percent since March 9, pushing its valuation to about 50 times companies’ reported earnings, near the most expensive level since 2003, weekly data compiled by Bloomberg show.
“It’s tough for companies to surprise on the upside because investors are anticipating better-than-estimated earnings,” said Markus Steinbeis, head of equity portfolio management at the German unit of Pioneer Investments, which oversees about US$221 billion globally. “Overall the environment for the equity market is good but the only headwind at the moment is high valuations.”
Stocks erased gains on Friday even after a report showed sales of existing US homes climbed last month to the highest level in more than two years.
GDP in the UK dropped unexpectedly in the third quarter as enduring slumps in services, manufacturing and construction kept the economy mired in its longest recession on record.
The UK’s Office for National Statistics said on Friday that GDP dropped for a sixth month, declining 0.4 percent in the third quarter from the second. Economists predicted a 0.2 percent increase in a Bloomberg News survey.
National benchmark indexes fell in 13 of the 18 western European markets.
Germany’s DAX declined 0.1 percent, while France’s CAC 40 retreated 0.5 percent. The UK’s FTSE 100 increased 1 percent.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from